MSP Acquires IT Solutions Provider: VC3 Buys Sophicity
VC3, a managed IT service provider from Columbia, South Carolina, has announced the acquisition of Sophicity for an undisclosed amount. This is VC3’s second acquisition in the last 12 months. In November, 2019, VC3 acquired masterIT, a Memphis, Tennessee-based managed IT service provider.
This is M&A deal 267 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
Sophicity is headquartered in Alpharetta, Georgia, and provides IT products and services to local governments. The company’s core offering is centered around its “IT in a Box” solution, which includes:
- Cybersecurity and computer maintenance
- 24×7 U.S.-based helpdesk for remote and onsite support
- Data backup with unlimited offsite data backup storage for disaster recovery
- Records and document management
- Body camera and squad car camera video archiving with unlimited offsite video storage, following record retention policies
- Information security policy and compliance
- A custom-designed website that is ADA-compliant and mobile-ready
- Vendor management and procurement
In addition to its Georgia headquarters, Sophicity has twelve additional offices spread across seven states. Prior to the acquisition, Sophicity had 25 employees, all of whom will join the VC3 team, a VC3 spokesperson confirmed with ChannelE2E. VC3’s total headcount is now 175 employees, the spokesperson said.
The deal strengthens VC3’s ability to serve more local governments and expands its geographic reach into five additional states, the company said. VC3 offers a full range of IT products, services, and solutions for small and large businesses, but specializes in working with government, public services providers, and utilities, according to the company. That includes municipal governments, police departments, water and sewer utility providers, and education institutions.
Sandy Reeser, VC3’s CEO, said:
“Sophicity is a strong company and I’m very excited that we can combine with a team who shares our culture and passion for local government. This acquisition only strengthens our ability to offer world-class IT services to towns and cities in every state. We’re so excited to expand our new collective service offerings into Arkansas, Connecticut, Iowa, Kentucky, and Oregon.”
Dave Mims, Sophicity’s CEO and founder said:
“I’m so proud of and humbled by the success of Sophicity. We started small and, through hard work and dedication toward helping local government, we meaningfully impacted the municipalities we serve. This next chapter—for both our municipalities and our employees—is full of possibility. Joining the VC3 team allows us to continue serving our municipalities as we do today while introducing new strengths and capabilities to help them even more. I couldn’t be more excited, and I see a very bright future.”
MSP Mergers, Acquisitions: Deal Flow
M&A activity in the IT services market slowed a bit when the coronavirus pandemic took hold in North America, but deal flow worldwide began to re-accelerate in the May 2020 timeframe, ChannelE2E has reported.